Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as revenue remained stable while operating cash flow increased, leading to higher free cash flow and margin. The current quarter exceeded the prior quarter and significantly outperformed the same quarter last year.
- With revenue unchanged, the rise in operating cash flow drove a higher free cash flow and an improved margin, indicating more efficient cash generation from sales.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, revenue held steady but all cash metrics strengthened substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$955.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$301.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$318.7M
Cash generated by operations before capital spending.
CapEx
$17.7M
Capital spending and related asset purchases.
FCF margin
21.9%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-10-01 | $1.4B | $278.2M | $23.0M | $255.2M | 18.2% |
| 2023-12-31 | $1.4B | $164.4M | $40.2M | $124.2M | 8.7% |
| 2024-03-31 | $1.4B | $291.0M | $15.9M | $275.1M | 20.4% |
| 2024-06-30 | $1.4B | $318.7M | $17.7M | $301.0M | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Revenue remained consistent, yet operating cash flow increased notably compared to both the prior quarter and the year-ago period. This improvement directly lifted free cash flow and margin without relying on revenue growth.
The stronger operating cash flow was the primary factor behind the higher free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, the rise in operating cash flow drove a higher free cash flow and an improved margin, indicating more efficient cash generation from sales.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, revenue held steady but all cash metrics strengthened substantially.
Monitor capital expenditure trends, as the current level is lower than both the prior quarter and the year-ago quarter.